One proposal for the Flat Tax would replace all taxes with a 35% sales tax. What do you think?

Question

In this proposition, all income, property, use, sin and sales taxes would be replaced by a blanket 35% consumption tax on all goods and services, to be sent to the Federal Government and delegated to the various states and municipalities.

There are about a dozen incarnations of this idea, please answer to the one proposed.

RoseWithin - I forgot about Canada's system. A "sin tax" in the U.S. is a consumption tax at a high rate on goods like alcohol, tobacco and gasoline.

Answer 1

Flat taxes never work. a) They favor the rich b) Paying 35% on everything you purchase would theoretically work, except everyone would be INCREDIBLY pissed off. Especially on big purchases on a house. Nobody wants to pay $40,000 in sales tax on their house. c) The Federal Government can't take in all the money and then redistribute it as it sees fit to the states. Not only will it piss off every state in the union, but it also forces the states to reduce/eliminate taxation, otherwise people would have no money. The only way the flat tax in this case would work, is if you reduced it to 10%, allowed the states to do a flat tax of up to 10% in addition, and then having a smaller graduated income tax.

Answer 2

The black markey ought to explode if we went to a nationwide sales tax in basic words. Twenty-3 %. is an absolute comic tale and ought to kill the commercial device because each and each element ought to work out a right away increse in value of 23% (discuss inflation!). does no longer count number in case you pay a lot less in income taxes, because optimal persons do no longer easily pay taxes (many make money on the triumphing device, see EIC and larger newborn Tax credit). the numerous likely ingredient which will ensue is not any substitute to present day device, even if the feds will upload a sales tax besides, yet more effective like a million or 2 %. That way it does no longer look to effect each and each element, yet ought to provide billions in additional effective sales. distinct than interior the few states which have not were given sales tax, the organizations that provide at the same time it are already use to sending of their money, such as yet another envelope does no longer be overly burdensome. this received't ensue without an change to the variety, and also you'll see how difficulty-loose those are to guide away from, lol. plenty more effective accessible to only stumble upon an activist (liberal or conservative) make sure to declare they could do it and we are all stuck with the effect.

Answer 3

SIN tax not many outside of Canada would know what you are talking about. SIN means Social Insurance Number(like Social Security Number in the USA). Think it should be more like 10 to 15% not 35% flat tax. If all would have to pay that, we could correct the debit.... here in the United States. Flat tax straight across the board. Do away with local and state, just make it federal!!! Tax was not to continue back in the depression era, but they saw a good thing...and kept it going. I say get rid of all tax period! Its our money we are earning, not theirs!!! Why should we give the government any of our earnings? Our property is that OUR property.

Added: I didn't realize they called it a "sin tax" here in the United States. Thanks for the enlightenment of that tax!!!

Answer 4

35% would kill most low income families. Let's say you have a family of 4 with both parents working full time at minimum wage. They would then have $13,925.60 after taxes. That's just not doable.